The New Zealand Taxpayers’ Union is today launching the first in a series of briefing papers aimed at tackling the country’s long-standing under-capitalisation and low productivity. Titled Going for Growth: Full Expensing of Capital Expenditure, the paper makes the case for a tax policy with a proven track record of boosting investment, productivity, and wages.

Full Capital Expensing allows businesses to immediately write off the cost of new equipment, machinery, and technology, rather than spreading the deduction over years under complex depreciation schedules. This policy has been successfully implemented in the United States and the United Kingdom, driving economic growth and increasing tax revenue in the long run.

“Economic growth is not just a theoretical concept—it’s the key to higher wages, better public services, and greater economic opportunities for future generations,” says Taxpayers’ Union Executive Director, Jordan Williams. “Full Capital Expensing is a no-brainer that would supercharge investment and make New Zealand businesses more productive.”

With Finance Minister Nicola Willis set to deliver Budget 2025 in less than three months, the Taxpayers’ Union is urging the Government to seize the opportunity and implement the policy to come into effect on Budget night.

“If Christopher Luxon is serious about growth, Full Capital Expensing should be at the top of his agenda. And if the Government really want to put a rocket under the economy, they could adopt the ‘use it or lose it’ approach used by Donald Trump and Rishi Sunak – making the policy time-limited to encourage businesses to bring forward investment decisions.”

The briefing paper highlights the success of Full Capital Expensing in other jurisdictions and details how New Zealand can implement it effectively.

“Politicians love to dangle short-term sweeteners in front of voters, but real economic growth comes from policies that drive productivity. Unlike tax cuts designed to boost consumer spending, Full Capital Expensing supports the kind of investment that lifts the entire economy.”

The Taxpayers’ Union is calling on Kiwis who support pro-growth policies to endorse the initiative and send a clear message to the Government.

“Poll after poll shows Kiwis are tired of managed decline, and they want more than fiddling round the edges from Budget 2025. Here’s a cost-effective solution which will go a long way to breaking us out of our economic downward spiral.”

The briefing paper can be found at https://www.taxpayers.org.nz/go_for_growth_report

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